Titan Medical Reports Operating and Financial Results for the Fourth Quarter and Year End 2022 and Announces Availability of Materials for the 2023 Annual Meeting of Shareholders

TORONTO, Ontario, May 31, 2023 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF), announced today the financial results for the three and twelve months ended December 31, 2022. The Company also announced that its 2023 annual meeting (the “Meeting”) is scheduled for Friday, June 30, 2023 at 4:00 pm E.T. to be held virtually at https://web.lumiagm.com/420568592.

Recent Activities:

• On May 26^th, the Company announced a non-exclusive license agreement with a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery for an upfront payment of US$7.5 million.
• On May 29^th, as a result of the strategic review process (“Strategic Review”) announced on November 30, 2022, the Board of Directors of Titan (the “Board”) approved a strategic transition in the Company’s business from the development and commercialization of robotic-assisted surgeries (“RAS”) technologies to evaluating new opportunities to further develop and license its intellectual property (“Strategic Transition”). Titan continues to retain the rights necessary to develop and commercialize RAS technologies, should it choose to do so, including the two-instrument Enos single-access RAS system (the “Enos System”) and, as announced on January 9, 2023, a three-instrument single-access RAS system that builds on the Enos System technologies.
• On May 29^th, the Company announced executive leadership team changes effective June 1, 2023, reflecting the Company’s Strategic Transition and to reduce operating expenses in the business, including the appointment of Paul Cataford as interim President and CEO, and Chien Huang as CFO.
  
  

Financial Highlights:

Note that the financial review below discusses the business as of December 31^st, 2022. As part of the Strategic Review and as previously disclosed, the Company significantly reduced all operating expenses commencing in late 2022 and through-out 2023 to date.

As of December 31, 2022, Titan had cash of $3.3 million, compared to $32.3 million at December 31, 2021. The Company has improved its cash position with the US$7.5 million in proceeds from the licensing deal announced on May 26^th.

For the year ended December 31, 2022, research and development (“R&D”) expenses were $33.0 million compared to $38.2 million in the comparative period. In 2022, R&D expenses were related to the development of the Enos System and the Enos 2.0 Technology. In 2021, R&D expenses were related to the development of the Enos System and the development work required to achieve the milestones under a development agreement with Medtronic plc (the “Development Agreement”).